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E&R 1998-05-18 I I I 167 ~ MINUTES OF THE 1998 BOARD OF EQUALIZATION AND REVIEW MAY 18, 1998 ASSEMBLY The New Hanover County Board of Equalization and Review met on Monday) May 18) 1998) at 12:31 p.m. in the Assembly Room of the New Hanover County Courthouse) 24 North Third Street) Wilmington) North Carolina. Members present were: Commissioners Buzz Birzenieks; Ted Davis) Jr.; Charles R. Howell; Vice-Chairman Robert G. Greer; Chairman William A. Caster; County Manager) Allen O'Neal; County Attorney) Wanda M. Copley; and Clerk to the Board) Lucie F. Harrell. Chairman Caster called the meeting to order and reported the purpose of the meeting was for the Board of County Commissioners to sit as the 1998 Board of Equalization and Review to hear appellants aggrieved by the value of their properties. The Commissioners are to hear testimony and inquire and examine documents to determine whether or not the property was valued at its true value according to the standards and rules adopted by the last general revaluation of real property as of January 1, 1991. The Board is to release values only as authorized, exempted or excluded by uniform Statutes of North Carolina or by the Constitution. The burden of proof is on the taxpayer to show the assessment was erroneous, and the appellant must show that the assessment used substantially exceeds the true market value and is substantially unjust. It is suggested that no decisions be rendered by the Board until all appeals have been heard. Notice of the decisions will be given in writing with the notice received within one week. Information relative to further appeals to the North Carolina Tax Commission will be enclosed with the decision. Tax Administrator) Roland Register, reported two appeals had been received. One of the appeals had not been reviewed when the Board of Equalization and Review met on April 20, 1998. The appellant has provided MAl information and worked with the appraisal staff to review the appraised value. The appellant will not be present but has requested a value change. The second appeal is a person who was not given adequate notice before April 20, 1998, and it was felt under due process, he should be given an opportunity to present his appeal to the Board of Equalization and Review. The appellant is Mr. Fred Hathaway who desires to argue the value of five parcels even though the appeal was filed for two parcels. After consulting with the Assistant County Attorney, it would be improper to consider anything but the two parcels appealed. TAX APPEAL - THE LANDING AT WRIGHTSVILLE BEACH - R06707-002-018-000 Appraisal Supervisor, Jim Bethune, reported the appeal for the Landing at Wrightsville was a late appeal without an opportunity to review the site before the meeting of the Board of Equalization and Review held on April 20, 1998. Since that time, the property has been thoroughly inspected and a review has been made of the MAl report that was performed July 1996 for financial purposes with an appraised value of $1,500,000. The Tax Department appraised the property at $2,186,182. After further review to support the value by the cost approach, it is felt the property should be valued at $1,988,561 as of January 1, 1991. ~ '168 MINUTES OF THE 1998 BOARD OF EQUALIZATION AND REVIEW MAY 18, 1998 Mr. Bethillle presented a letter from Mr. Mark D. Mitchell stating that he would agree to an assessed value of $1,988,561. TAX APPEAL PRESENTED BY MR. FRED G. HATHAWAY FOR PARCELS R06700- 002-079-000 - LOT 4 AND R06700-002-080-000 - LOT 5 Mr. Robert Glasgow, Assistant Appraisal Supervisor, reported the subject property was purchased on Jillle 27, 1996 for $875,000 and was subdivided into five (5) individual parcels. A house was located on Lot 5, and later a garage apartment from Lot 4 was moved to Lot 5. The house has been improved with a 1,000 square foot addition, and was upgraded considerably after Hurricane Fran. When visiting the property to determine the 1991 value, Lot 5 was valued at $135,000, and the house was valued at $209,000. Previously, the house was valued at $62,000 because of the condition and quality of the structure. The property has a view of the Intracoastal Waterway and access to the water. Mr. Hathaway disagrees with the assessed value and feels the property should be valued at $90,000 and the house at $117,000. After visiting Lot 4 and reviewing comparisons submitted by Mr. Hathaway in Windward Oaks and Cove Point, it was felt the properties were not comparable. Lot 4 was valued at $90,000 because of its location and access to the Intracoastal Waterway. Lot 4 is approximately 108 feet wide at its largest point and 191 feet long. There are no buildings located on the lot. Mr. Glasgow advised that Mr. Hathaway was present and would like to comment. Mr. Fred Hathaway, the appellant, reported the five lots do not have water rights. There is a dock which will provide three boat slips at a later date. Lots 4 and 5 are not going to be assigned water rights. Lot 1 and 2 are the lots on the water. Attorney David Barefoot will be writing the agreement for three boat slips illlder the CAMA permit. Water rights will go with Lots 1, 2, and 5. Commissioner Howell asked if Lot 4 has access to the water? Mr. Hathaway responded that Lot 4 or Lot 5 can have access to the water. Commissioner Howell asked Mr. Hathaway if he had the option of selling water rights with Lot 4? Mr. Hathaway responded the homeowners association would have to vote on water rights for Lot 4; however, there is no written record showing whether the lot has or does not have water rights. When the land was purchased, there was no intention of having more than three houses on three lots with water rights. No written agreement was prepared until a decision was made to sell the lots. I I I 169 ~ MINUTES OF THE 1998 BOARD OF EQUALIZATION AND REVIEW MAY 18, 1998 Commissioner Howell stated the main issue for the Board to consider is whether Lot 4 will have water rights. Mr. Hathaway advised this would be up to him, and he did not intend to have water access for Lot 4. Once the 30-foot utility easement is removed, Lot 4 will have an effective lot size of 90 x 113 feet. After obtaining a price list from Windward Oaks, the price per lot ranges from $49,000 to $59,000 at the 1998 value. Lot 4 is smaller than the lots in Windward Oaks. Without water rights, this lot should not be valued at $90,000. Mr. Jim Bethune stated he felt there was confusion about the legal description of the property before it was subdivided. When Mr. Hathaway purchased the land, it was subdivided on the same day. The Tax Department applied the same value to the property as applied to other properties on that side of Masonboro Sound Road. It was assumed the property would have water rights; therefore, the assessed value was not incorrect. The comparable property across the road without any possibility of water rights can not be used as a comparison. The Tax Department does not feel the assessed value of $90,000 is unreasonable. Commissioner Howell asked Mr. Bethune if Lot 4 has water access? Mr. Bethune responded Mr. Hathaway could provide water rights to the buyer. If the lot was sold to a person who did not want water rights, the property could be reappraised. MEETING OF 1998 BOARD OF EQUALIZATION AND REVIEW RECESSED Chairman Caster recessed the meeting of the Board of Equalization and Review at 1 :00 p.m. MEETING OF THE 1998 BOARD OF EQUALIZATION AND REVIEW RECONVENED TO REGULAR SESSION Chairman Caster reconvened the Board of Equalization and Review to regular session at 3:35 p.m. Chairman Caster asked if the Board had any comments on the assessed value of the Landing at Wrightsville Beach. No questions or comments were made. Chairman Caster requested a motion. Motion: Vice-Chairman Greer MOVED, SECONDED by Commissioner Birzenieks to reduce the 1998 value of the Landing at Wrightsville Beach (R06707-002-018-000) to an assessed value of $1,988,561. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Caster asked if they were any comments on the tax appeal submitted by Mr. Hathaway. ~ 170 MINUTES OF THE 1998 BOARD OF EQUALIZATION AND REVIEW MAY 18, 1998 Discussion followed on the value of Lot 5 and the improvements made to the house. Mr. BethWle commented on the improvements to the house and the value of the lot with a water view and access, and stated the appraised value of $344,391 was more than reasonable. It is the feeling of the Tax Department that the property could be sold for a much higher price. Discussion followed on the value of Lot 4. Mr. Bethune advised he felt the lot was worth $90,000. Motion: After discussion of surrounding lots and the question of whether water rights would be granted for Lot 4, Commissioner Howell MOVED, SECONDED by Commissioner Birzenieks to approve a reduction in the assessed value of Lot 4 from $90,000 to $70,000 and uphold the assessed value of $344,391 for Lot 5 as recommended by the Tax Department. Upon vote, the MOTION CARRIED UNANIMOUSLY. ADJOURNMENT Chairman Caster adjourned the meeting at 3:45 P.M. Respectfully submitted, ~.~f'~ Clerk to the Board